Methods, systems and devices for packet watermarking and efficient provisioning of bandwidth

ABSTRACT

Disclosed herein are methods and systems for transmitting streams of data. The present invention also relates to generating packet watermarks and packet watermark keys. The present invention also relates to a computerized system for packaging data for transmission to a user. The system may utilize computer code to generate a bandwidth rights certificate that may include: at least one cryptographic credential; routing information for the transmission; and, optionally, a digital signature of a certificate owner; a unique identification code of a certificate owner; a certificate validity period; and pricing information for use of bandwidth. The present invention also relates to an electronic method and system for purchasing good and services by establishing an account whereby a customer is credited with a predetermined amount of bandwidth usage, and then charges are assessed against the account in an amount of bandwidth usage which corresponds to the agreed upon purchase value for the selected item.

RELATED APPLICATIONS

This application is a division of application Ser. No. 11/900,065, filedSep. 10, 2007, which is a division of application Ser. No. 10/417,231,filed Apr. 17, 2003, which claims benefit to Provisional Application No.60/372,788, filed Apr. 17, 2002. application Ser. No. 11/900,065 andProvisional Application No. 60/372,788 are both incorporated herein byreference in their entirety.

This application is also related to the following pending applications:pending U.S. patent application Ser. No. 09/046,627, filed Mar. 24,1998, entitled “Method for Combining Transfer Function withPredetermined Key Creation”, issued as U.S. Pat. No. 6,598,162; pendingU.S. patent application Ser. No. 09/644,098, filed Aug. 23, 2000,entitled “Multiple Transform Utilization and Application for SecureDigital Watermarking”, issued as U.S. Pat. No. 7,035,409; and pendingU.S. patent application Ser. No. 09/767,733, filed Jan. 24, 2001,entitled “Multiple Transform Utilization and Application for SecureDigital Watermarking” The previously identified patents and/or patentapplications are hereby incorporated by reference, in their entireties.

Each of the following pending applications is incorporated by reference,in its entirety: pending U.S. patent application Ser. No. 09/594,719,filed Jun. 16, 2000, entitled “Utilizing Data Reduction inSteganographic and Cryptographic Systems”, which is acontinuation-in-part of International Application No. PCT/US00/06522,filed Mar. 14, 2000, which PCT application claimed priority to U.S.Provisional Application No. 60/125,990, filed Mar. 24, 1999, issued asU.S. Pat. No. 7,123,718; pending U.S. patent application Ser. No.09/731,040, filed Dec. 7, 2000, entitled “Systems, Methods And DevicesFor Trusted Transactions”, issued as U.S. Pat. No. 7,159,116; pendingU.S. patent application Ser. No. 10/049,101, filed Feb. 8, 2002,entitled “A Secure Personal Content Server”, which claims priority toInternational Application No. PCT/US00/21189, filed Aug. 4, 2000, whichclaims priority to U.S. Patent Application No. 60/147,134, filed Aug. 4,1999, and to U.S. Patent Application No. 60/213,489, filed Jun. 23,2000; pending U.S. patent application Ser. No. 09/657,181, filed Sep. 7,2000, entitled “Method And Device For Monitoring And Analyzing Signals”;pending U.S. patent application Ser. No. 09/671,739, filed Sep. 29,2000, entitled “Method And Device For Monitoring And Analyzing Signals”;pending U.S. patent application Ser. No. 09/956,262, filed Sep. 20,2001, entitled “Improved Security Based on Subliminal and SupraliminalChannels For Data Objects”, issued as U.S. Pat. No. 7,127,615; pendingU.S. patent application Ser. No. 09/731,039, entitled “System and Methodfor Permitting Open Access to Data Objects and For Securing Data Withinthe Data Objects,” filed Dec. 7, 2000, issued as U.S. Pat. No.7,177,429; pending U.S. patent application Ser. No. 09/545,589, filedApr. 7, 2000, entitled “Method and System for Digital Watermarking”,issued as U.S. Pat. No. 7,007,166; pending U.S. patent application Ser.No. 08/999,766, filed Jul. 23, 1997, entitled “Steganographic Method andDevice”; pending U.S. patent application Ser. No. 09/456,319, filed Dec.8, 1999, entitled “Z-Transform Implementation of Digital Watermarks”,issued as U.S. Pat. No. 6,853,726; U.S. patent application Ser. No.08/674,726, filed Jul. 2, 1996, entitled “Exchange Mechanisms forDigital Information Packages with Bandwidth Securitization, MultichannelDigital Watermarks, and Key Management”; pending U.S. patent applicationSer. No. 10/369,344, filed Feb. 18, 2003, entitled “Optimization Methodsfor the Insertion, Protection, and Detection of Digital Watermarks inDigitized Data”, issued as U.S. Pat. No. 7,095,874; and pending U.S.patent application Ser. No. 09/789,711, filed Feb. 22, 2001, entitled“Optimization Methods for the Insertion, Protection and Detection ofDigital Watermarks in Digital Data”, issued as U.S. Pat. No. 7,107,451.

In addition, this application hereby incorporates by reference, as iffully stated herein, the disclosures of the following patents: U.S. Pat.No. 5,822,432, entitled “Method for Human Assisted Random Key Generation. . . ”; U.S. Pat. No. 5,905,800, entitled “Method & System for DigitalWatermarking”; U.S. Pat. No. 5,613,004, entitled “Steganographic Methodand Device”; U.S. Pat. No. 5,687,236, entitled “Steganographic Methodand Device”; U.S. Pat. No. 5,745,569, entitled “Method forStega-Protection of Computer Code”; U.S. Pat. No. 6,078,664, entitled“Z-Transform Implementation of Digital Watermarks”; U.S. Pat. No.5,428,606, entitled “Digital Commodities Exchange”; U.S. Pat. No.5,889,868, entitled “Optimization Methods for the Insertion, Protectionand Detection . . . ”; U.S. Pat. No. 6,522,767, entitled “OptimizationMethods for the Insertion, Protection and Detection . . . ”; U.S. Pat.No. 5,539,735, entitled “Digital Information Commodities Exchange”; andU.S. Pat. No. 6,205,249, entitled “Multiple Transform Utilization andApplication for Secure Digital Watermarking” The following article isalso incorporated herein by reference: “Bandwidth as Currency,” IEEEMultimedia, January/March 2003 (Vol. 10, No. 1), by Scott Moskowitz.

BACKGROUND

A need exists for optimizing and provisioning the allocation ofbandwidth. This is to assure better handling of the competitive needsbetween networks and the concept of Quality of Service (“QoS”),including determining the priority of available bandwidth in a givennetwork. The prior art addresses priority of transmission paths for datain an attempt to alleviate bottlenecks within a given network. Cachingtechnologies, as an example, seek to push higher demand data closer tothe access points for which the data is demanded, so-called “edgetraffic.” A related approach, Quality of Service (“QoS”), attempts tomake decisions about bandwidth accessibility based on a user's abilityto access material within some predetermined time frame. For instance,if X number of users are able to access Y amount of bandwidth over somefixed period of time T, bandwidth can be estimated as a function ofsatisfying users X, or some percentage of X, for each increment of Ydivided by T.

Users, however, may seek data objects (note that the terms “dataobject”, “data”, “discrete analog waveform”, or “data signal”—may beused interchangeably in this application) which by their very structureor format may occupy large amounts of bandwidth, thereby creatingbandwidth demand that has little or no relationship to how the data isvalued by third parties, including owners of the rights related to theobjects. An example is the higher bandwidth demand and creation ofnetwork latency when streaming an audio or video signal, where, inaddition, the data signal itself may be copyrighted. It is reasonable toassume that a copyrighted work does indeed have more value than one thatis not copyrighted.

If a network can be used to handle any number of data files which can beaesthetic or not (for instance, functional data, such as algorithms,which itself manipulates data, would be considered to be non-aesthetic),and the value of the potential data may not be known in advance ofprovisioning for understanding how to handle bandwidth, this disclosureis designed to address some of the key factors in enabling a market forhandling bandwidth and related transactions for data, which is made upof bandwidth in terms of how the data is rendered, manipulated,distributed and “potentially” priced given delivery and derivativespricing to assist in the aggregate with delivery (particularly,commercial, so as to maximize the value of a network at any given pointin time) of said objects. Another example is peer-to-peer networktechnologies that may tie-up bandwidth based on extensive databasefunctions to bring two or more parties together seeking some data objectwithout regard to the object's price or the underlying cost ofmaintaining peer-to-peer links to enable transfers of files betweenusers. Additionally, the data object being demanded may not be readilydetermined to have ownership, authentication or responsibility necessaryfor successful commerce. This includes virtual private networks (“VPN”)or demands made for security by senders, receivers, or combinations ofboth. Such clearinghouse features have been proposed by digital rightsmanagement (“DRM”) providers but they lack the efficiencies and consumerdemand which are required to handle data objects in a manner consistentwith historical sales of a variety of data objects offered in physicalformats. Systems such as Napster™, have been estimated to command asmuch as 4% of overall Internet bandwidth and yet no financialtransactions exist to pay for either this extensive use of networkbandwidth or any affiliated ownership and usage rights of the data beingexchanged nor the historical value of said objects in other mediums suchas physical objects containing the data (for example, copyrighted musicfiles).

TCP, or Transmission Control Protocol, is currently used to break datainto packets for transmission, which are received and reconstructed,sequentially at the receiver's end of the transmission. Technologiesexist to assist with error correction when packets are dropped or lostduring transmission. IP, or Internet Protocol, is designed to provideeach networked “device” with an IP address. Packets sent under TCP andlabeled with IP addresses enable data to be broken into packets and sentbetween machines that share TCP/IP coding schemes. In IP version 4(“IPv4”), the current Internet Protocol, there are option fields thatcan be exploited at any place in the transmission chain forwriting/embedding and detecting/recovering digital watermarks, a featureof embodiments in the present invention, for provisioning and pricingschemes, bandwidth prioritization, management systems, disputeresolution and clearinghouse functions. IPv4 allows up to 40 bytes ofoptions; the size of IPv6 extension headers will only be constrained bythe size of the IPv6 packet. Because of the sequential nature of TCP/IPa variety of optimizations have been suggested in the art. These includebetter ways of handling packets that may not have arrived at theintended address, or may have been lost during the transmission for anynumber of reasons (timing, error, overcapacity, rerouting, etc.).

One means for optimizing network speed is based on application ofReed-Solomon error correction coding. Because TCP/IP packets representpredetermined packets of data, that is, have a specific size withoutregard to the data object (e.g., its characteristics, perceptible orotherwise) being rendered, coarser estimates of the data objects'aesthetics or characteristics enable mathematical values to be assignedto a larger portion or subset of the data object itself. A simple linearequation can be used to define the independently derived valuesrepresenting the data object. These mathematical values representgroupings of packets that are not sequentially ordered but fitted to thecharacteristics of the data object being broken down for transmission.These values can be handled by the systems or devices of the sender andreceiver of the data to speed transmission or routing of the data. Usingerror correction coding, chunks are not sequential, as with TCP, but aregenerated with variations on Reed-Solomon code so that receivers of thedata get chunks of the transmission that can be reconstructednon-sequentially but efficiently so long as the assigned values for thedata are received. The chunks may also overlap the packets that wouldtypically represent the object. In some applications, those signalfeatures of the data which are deemed relatively, perceptibly importantare reconstructed first on the receiving end of the transmission. Thisapproach has the effect of speeding the routing of data over a network,such as the Internet.

IPv6 includes proposals for additional optimizations. In contrast withcurrent IPv4 systems which are optimized to handled end-to-endtransmission of data, without regard for the content of the data itself,attention has turned to enabling traffic prioritization, low levelauthentication with encryption, and better handling of audio and videostreams. The present invention seeks to enable better granularity inhandling data packets with a labeling scheme that can be handled bynetwork infrastructures. Also essential is the authentication protocolto prevent labeling fraud. Specifically, the present invention offers ameans for utilizing watermarks, in a manner that differs fromtraditional notions of digital watermarking (i.e., as information hidingin discrete objects), to prioritize data traffic and also to define thedata being transmitted in terms consistent with any rights or ownershipover the content being represented by the data. Provisions forclearinghouse facilities and certification of traffic are alsocontemplated by this document. Secondary or derivative markets forassisting in enabling efficiencies for the pricing of the bandwidthutilized are also, by extension, contemplated.

SUMMARY OF THE INVENTION

Disclosed herein is a method for transmitting a stream of data, whichmethod comprises the steps of: receiving a stream of data; organizingthe stream of data into a plurality of packets; generating a packetwatermark associated with the stream of data; combining the packetwatermark with each of the plurality of packets to form watermarkedpackets; and transmitting at least one of the watermarked packets acrossa network. The method may further comprise the steps of: receiving atleast one packet that has been transmitted across a network; analyzingat least one packet for a watermark and authenticating the at least onepacket using at least a portion of the watermark; and in the event thatthe analysis authenticates the at least one packet, permitting thetransmission of the at least one packet, and in the event that theanalysis does not authenticate the at least one packet, generating asignal of non-authentication. In generating a packet watermark, thepresent invention may include the steps: generating a watermark packetkey; associating a unique identifier with the watermark packet key; andgenerating a packet watermark comprising the unique identifierassociated with the watermark packet key. The packet watermark may beplaced in a header for each of the plurality of packets to formwatermarked packets. Optionally, the packet watermark may include aunique identifier associated with the watermark packet key, and/or ahash output for a portion of the stream of data. Optionally, in theevent that the analysis does not authenticate a packet, the inventionmay: i) halt the transmission of the data; ii) modify the data beingtransmitted so that the data is either degraded in quality and/or inquantity; iii) store a copy of the data being transmitted along withinformation that is indicative of a failure to authenticate occurred;and/or iv) delay the transmission.

Also disclosed herein is a system for transmitting a stream of data,comprising: a processor to receive a stream of data and to organize thestream of data into a plurality of packets; a generator to generate apacket watermark associated with the stream of data; a packager tocombine the packet watermark with each of the plurality of packets toform watermarked packets; and a transmitter to transmit at least one ofthe watermarked packets across a network. The system may furthercomprise one or more routers, which router may include: a networkreceiver to receive a packet that has been transmitted across a network;and a network processor coupled to the network receiver for analyzingthe packet for a watermark that can be used to authenticate the packet;whereby in the event that the analysis authenticates the packet, therouter permits the transmission of the packet to continue, and in theevent that the analysis does not authenticate the packet, the routergenerates a signal of non-authentication. The generator may include: amodule to generate a watermark packet key; a module that associates aunique identifier with the watermark packet key; and a watermarkgenerator to generate a packet watermark, which itself may include theunique identifier associated with the watermark packet key and/or aquality of service level associated with the data stream. Optionally,the generator may include a hashing module to generate a hash output fora portion of the stream of data, which hash output may be included inthe packet watermark.

Also disclosed is a method for packaging data for transmission to auser, comprising the steps of: receiving content data that is desired bya user; organizing the content data into at least two packets;generating a packet watermark associated with at least one of thepackets of data; generating a bandwidth rights certificate; andcombining the bandwidth rights certificate, the packet watermark, andthe at least one packet for transmission across a network comprising aplurality of routers. The bandwidth rights certificate may include: atleast one cryptographic credential; and routing information selectedfrom the group consisting of authorization data to authorize use of atleast one particular router and priority data to prioritize use of atleast one particular router.

Also disclosed is a computerized system for packaging data fortransmission to a user, which system comprises: a receiver to receivecontent data; computer code to organize the data into at least twopackets; computer code to generate a packet watermark associated with atleast one of the packets of data; computer code to generate a bandwidthrights certificate; and computer code to combine the bandwidth rightscertificate, the packet watermark, and the at least one packet, fortransmission across a network comprising a plurality of routers. Thebandwidth rights certificate may include: at least one cryptographiccredential; and routing information selected from the group consistingof authorization data to authorize use of at least one particular routerand priority data to prioritize use of at least one particular router.The bandwidth rights certificate may also include one or more of thefollowing: a digital signature of a certificate owner; a uniqueidentification code of a certificate owner; a certificate validityperiod; and pricing information for use of bandwidth. Optionally, thesystem may include a storage medium for storing bandwidth rightscertificate and/or one or more packets of data. The system may beconfigured to operate on a hardware device selected from the groupconsisting of: a personal computer, a cable box, a telephone, a cellulartelephone, a personal digital assistant, a personal music playbackdevice, and a smart card.

Also disclosed is an electronic method for purchasing good and/orservices, which comprises the steps of: establishing an account wherebya customer is credited with a predetermined amount of bandwidth usage;establishing a communication link with a vending system; selecting anitem to be purchased; agreeing to a purchase value for the selecteditem; communicating to the vending system a request to purchase theselected item; and causing a debit to the account in an amount ofbandwidth usage which corresponds to the agreed upon purchase value forthe selected item. The communication link may utilize bandwidth on agiven network, in which case the method may include the further step ofcausing a debit to the account in an amount of bandwidth usage whichcorresponds to the bandwidth usage associated with the time utilized inpurchasing the item using the communication link. A debit may be in anamount of bandwidth usage which corresponds to an agreed upontransactional charge.

Also disclosed is an electronic method for selling good and/or services,and for collecting payments from a purchaser's account, which accounthas a predetermined amount of bandwidth usage. This method may includethe steps of: establishing a communication link between a vending systemand a purchasing system; receiving a request to purchase a selecteditem; determining a purchase value for the selected item; causing adebit to the purchaser's account in an amount of bandwidth usage whichcorresponds to the agreed upon purchase value for the selected item; andsending an instruction to deliver the selected item. This method may beuseful when purchasing copies of digital data, when the method may beused to create a copy of digital data and to embed a record of thetransaction into the copy of the digital data. When the communicationlink being established utilizes bandwidth on a given network, the methodmay include the step of causing a debit to the account in an amount ofbandwidth usage which corresponds to the bandwidth usage associated withthe time utilized in purchasing the item using the communication link.The debit may be made in an amount of bandwidth usage which correspondsto an agreed upon transactional charge. The method may also confirm thatthe debit to the account has been completed before sending aninstruction to deliver the selected item.

Also disclosed is an exchange system for selling good and/or services,and for collecting payments from a purchaser's account, which accounthas a predetermined amount of bandwidth usage. The system may include: acommunicator to establish a communication link between the exchangesystem and a purchasing system, whereby the two-way communication systemcan receive a request to purchase a selected item; a display foradvertising, for sale, good and/or services; a transaction module fordetermining a purchase value for a selected item; a debit module forcausing a debit to the purchaser's account in an amount of bandwidthusage that corresponds to the sum of: i) the purchase value for theselected item and ii) a transactional charge; and a delivery module forsending an instruction to deliver the selected item. The system may alsoinclude a dispenser to deliver the selected item. The system may alsoinclude an interface (for example, software and/or hardware) physicallylocated on the exchange system to permit the selection for purchase ofat least one items. The debit module may include a communication linkwith a third party system, whereby the debit module sends a request todebit the purchaser's account in an specified amount of bandwidth usage,and whereby the third party system causes the debit in the specifiedamount

Finally, a system for the transmission of data is disclosed. This systemmay include: a receiver to receive content data; a processor to organizethe content data into a plurality of packets; a watermark generator togenerate at least a portion of a packet watermark associated with atleast one packet of data; a certificate generator to generate abandwidth rights certificate associated with at least one packet ofdata; and a transmitter to transmit at least one of the plurality ofdata packets, its associated watermark, and its associated bandwidthrights certificate across a network. The bandwidth rights certificatemay include routing information selected from the group consisting ofauthorization data to authorize use of at least one particular routerand priority data to prioritize use of at least one particular router.The system may also include a router to receive a transmissioncomprising a data packet, its associated watermark, and its associatedbandwidth rights certificate, which router is configured to analyze thetransmission and to check the authenticity of the transmission, and inthe event that the analysis does not authenticate the transmission, therouter generates a signal of non-authentication. In the event that theanalysis does not authenticate the transmission, the router may take anaction selected from the group consisting of: halting the transmission;delaying the transmission; and re-routing the transmission to a routerfor which the transmission is authenticated. The router may beconfigured to analyze and authenticate the transmission by checking aplurality of packet watermarks.

By means of associating a data object with a watermark, the presentinvention can analyze at the data that has been prepared for networkdelivery. Using the present invention, data can now be sent to areceiver in a manner which provisions bandwidth in an efficient manner(the novel embodiments described herein). When a single file iswatermarked, it can be made as a unique copy. An advantage of thepresent invention is that it can create “postage for packets” (morearticulately described as “bandwidth provisioning”). The presentinvention provides better granularity of what packets are demandedversus other packets. By means of associating identity andauthenticating information of the packets, the present invention canmore efficiently apportion bandwidth to meet market demands which arebased on demand for information over networks and a better ability toidentify the packets people are willing to pay for. The presentinvention also permits a better accounting system so that packets can bebilled to the appropriate parties, and permits disputes to be moreobjectively resolved because the present invention can use cryptographicprotocols that help to assure a higher level of confidence in howprovisioning is being handled. Similarly, the present invention makes itpossible to charge for bandwidth in a manner more closely similar to atraditional telephone billing system. The difference is that telephonebilling systems do not take into account the contents or paths ofpackets, per se, nor do traditional telephone systems assist in creatinga means for competitively evaluating bandwidth based on consumer demandfor data which can be compared in media terms (type of media, rights,authenticity of the data, quality level of the media based on adifferential price, etc.) not solely data size terms.

Using the present inventions, a network can check and verify efficientbandwidth delivery on a packet level and can store informationconcerning better paths between senders and receivers of these packets.The present inventions permit optimized “flows” so to speak. For certaineconomic or business models, further features may be added to makeinternet handling of data similar to how billing works for traditionaltelecommunications by phone companies. Such companies buy bandwidthresources in bulk by contract and do not have any underlyingunderstanding of what the bandwidth is used for nor how to encouragehigher value for any given bit for each bit per time calculation. Thereis no technology that does this either in the existing art Since thedenominator, time, is fixed at any discrete moment, maximizing economicvalue for the numerator (the bit) given a market for information andgoods and services that are informationally based, higher economic valuecan be attributed to a given network or networks which implement thefeatures embodied herein. While no one can know in advance what thedemand for a given data object—prior to being exposed to a marketplaceof participants, parties can agree to the cost of bandwidth for a givenbusiness activity (streaming a live concert, handling bandwidth basedtransactions which are tied to a subscription with a bandwidth devicesuch as a cell phone, choices between a streamed or copyable version ofa data object, etc.). Streaming, to date, has never been madeeconomically viable because, in part, vendors have not taken a packetlevel view of the flow of data to people demanding a stream. Nor havevendors tied payment or willingness to pay to the packets. This is wherethe present invention differs.

This document addresses three things to assist in getting this done:efficient provisioning of the packets on the network the creation of aso-called “packet watermark”; creation of bandwidth credentials “toenhance liquidity and derivative pricing provisioning for futureestimated use of bandwidth”; and market mechanisms with cryptographicprotocols to assist in billing and resolution disputes, both for thepackets themselves, and as an extension application of traditionalwatermarking to the data objects as a whole to uniquely identify theobject as with previous watermarking disclosures. Preferably, packetwatermarked data does not interfere with traditional watermarks toestablish responsibility for the objects being transacted, since theconsumer has no care about what the packets are but may benefit if theconsumer is able to observe which paths are best for gettinginformation. Vendors selling information similarly would pay premiumsfor a better understanding of this granularity. This may be to avoid“double payments” of bandwidth where they handle the sending andreceiving costs—instead of a path between a sender and receiver.).

The present invention adds the novel layer of identity of the packetsand subsequent provisioning by means of authenticating packets along aparticular path (“flow”) and perhaps using the best path as historyabout various paths are captured by a database used for such purposes.Heuristics may be applied as the system learns the best paths forpackets so that future or subsequent use can be optimized. Taken toanother level, the packets can be further analyzed based on what thedata is, if such identification is also provided. Packet watermarks anddata object watermarks are two methods, one micro and macro, in terms ofthe data's aesthetics or utility to the sender and receiver. Whilepackets may be useless as packets, in the aggregate, data objects havevalue. This value is determined by a market place for information thatcan create receipts for the objects and also postage for the packets.

DETAILED DESCRIPTION Packet Watermarking for Quality of Service Delivery

A watermark is a data object embedded inside a carrier that is used toauthenticate the carrier without interfering with its normal usage. Theclassic historical example is a watermark in a bank note thatauthenticates the paper used for printing. More recently, digitalwatermarks have been developed to imperceptibly embed data in richcontent objects to transmit all varieties of information. Digitalwatermarks can also be applied to functional data such as software orcode by means of obfuscation of the actual functional code, licenseinformation, identity, or other uniqueness hidden in similar ornonfunctional code. Software watermarking is intended to assist inauthenticating code in a manner more robust to the underlyingfunctionality of the software than can be accomplished by simple digitalsigning of the code. Signing aesthetic or functional data at theinherent granularity of perception or function enables authentication ofsaid data even after data compression or code optimization; but suchwatermarking can also be used to detect manipulations of the data at asubsequent time. The following applications and pending applicationsrepresent a variety of digital watermarking and steganographic cipheringapplications, and are incorporated herein by reference: U.S. patentapplication Ser. No. 09/046,627, filed Mar. 24, 1998, entitled “Methodfor Combining Transfer Function with Predetermined Key Creation”;pending U.S. patent application Ser. No. 09/644,098, filed Aug. 23,2000, entitled “Multiple Transform Utilization and Application forSecure Digital Watermarking”; pending U.S. patent application Ser. No.09/767,733, filed Jan. 24, 2001, entitled “Multiple TransformUtilization and Application for Secure Digital Watermarking”; pendingU.S. patent application Ser. No. 09/545,589, filed Apr. 7, 2000,entitled “Method and System for Digital Watermarking”; pending U.S.patent application Ser. No. 08/999,766, filed Jul. 23, 1997, entitled“Steganographic Method and Device”; pending U.S. patent application Ser.No. 09/456,319, filed Dec. 8, 1999, entitled “Z-Transform Implementationof Digital Watermarks”; and pending U.S. patent application Ser. No.08/674,726, filed Jul. 2, 1996,entitled “Exchange Mechanisms for DigitalInformation Packages with Bandwidth Securitization, Multichannel DigitalWatermarks, and Key Management.” Other pending applications apply to amodel for bandwidth optimization using digital watermarks: pending U.S.patent application Ser. No. 10/369,344, filed Feb. 18, 2003, entitled“Optimization Methods for the Insertion, Protection, and Detection ofDigital Watermarks in Digitized Data”; and pending U.S. patentapplication Ser. No. 09/789,711, filed Feb. 22, 2001, entitled“Optimization Methods for the Insertion, Protection and Detection ofDigital Watermarks in Digital Data”, which applications are incorporatedherein in their entireties. Less attention, however, has been paid tothe concept of perceptible but non-interfering digital watermarks.

The Internet Protocol (IP) encapsulates all traffic inside packets. Theprevious description of IP applies here. A specific data object isbroken into two or more packets, based on size. Each packet has a headerthat contains addresses, routes, and other identifying information. Manyparties have addressed the security of packets, including such standardsas IPSec. These protocols allow for encryption and authentication ofpackets and flows of packets, whereby the receiver can be assured of thesecrecy and authenticity of each packet. However, these systems are alldesigned to create a secure interchange between compliant parties. Whatis missing is a system by which the sender can guarantee a particularQuality of Service (QoS) to a receiver without entering into acryptographic exchange with the receiver, using the existing andproposed Internet protocols without modification. This invention coversa novel combination of watermarking techniques with Internet Protocolsto create such a system.

When a receiver requests a data object from a sender, the sender createsa packet flow with the receiver's address and sends it out into theInternet. The packets may make many hops before arriving at thereceiver's IP address. At each node, a router examines the address andchooses a route to the next node. Often there are many possible routesfrom each node to the final destination. These routes may be ranked by anumber of criteria, including current load, historical load, historicalreliability, current latency, and historical latency. All of thesefactors could be used to route individual packets by more or lessoptimal paths—assuming that the router could discriminate betweendifferent flows. The packet watermark becomes the method by which therouter identifies streams and creates differential QoS.

Simply labeling a packet as express, regular, or slow delivery isinsufficient. There is no way to enforce compliance with the label.Quickly, everyone would be marking their packets “express” and therewould no longer be differentiation. This is an example of the“free-loader” problem. A “packet watermark,” on the other hand, iscryptographically associated with the contents of the packet itself. Forexample, a traditional digital watermark may be dependent on signalcharacteristics of the signal being watermarked. If a key-based systemis used for watermarking, a cryptographic association between the keyand the signal via the watermark may be created. Besides the noise orsignal characteristics in the signal itself, the key may be seeded byindependent random information to make it more difficult to guess(meaning randomness independent form the signal to be watermarked tomake guessing the key more computationally difficult—if a watermark isbased solely on the signal and its inherent noise, finding the needle inthe haystack is simply a searching problem, not a computationallydifficult problem), even if the watermark is found in the signal.Key-based watermarks are used to authenticate or verify a data signal toestablish responsibility for said signal or alert users of unauthorizeddata signal copies. Unauthorized use of a particular routing prioritycould be detected by a packet sniffer, which sampled a fraction of theoverall traffic to detect, and deter, abuse of the system. The snifferreads the watermark on the packet, checks the authentication, andsignals invalid packets. The flow can then be rerouted, delayed orhalted, depending upon the terms of the commercial contract. Additionalembodiments of the present invention can assist in enabling a workableexchange that may further alert participants of the exchange ofparticular users or unauthorized parties. This can assist in preventingDenial of Service (“DoS”) attacks and similar misuse of network traffic.Conversely, the exchange may maintain histories of the effectiveness ofparticular routes or particular parties that may command a premium priceor similar consideration for the “recognition” or “reputation” a partyhas attained.

Some form of recognition or identification of data streams may behandled by firewalls, intrusion detection systems and similar analysisto assure data integrity. These common techniques rely on comparisonswith prior history of the data stream or data associated with it and mayinclude heuristic or Bayesian methods for optimizing inherentlycomparative approaches. The present invention contemplates potentialoptimizations in authentication or verification of data streams andtheir associated packet watermark[s] by determinations of any orcombinations there of the following: Ethernet IDs, port IDs, URLs, DNSaddresses, IP addresses, related data streams, related packet flows, XMLor meta-data associated with the data streams or data objects, intrusiondetection techniques, virus detection techniques, and a logical contextof the packets' origin or destination. To this extent, the presentinvention may integrate data integrity checks along with its dataauthentication functions.

SAMPLE EMBODIMENT

In one embodiment of the present invention, the packet watermark may beused to classify a stream of data for a particular QoS. In particular,the stream of data may be organized into a plurality of packets, and thesender may add a watermark to the header of each packet comprising thestream. The size of the watermark may vary, but for illustration, a32-bit watermark is used. Preferably, the same 32-bit watermark may beplaced in each and every packet in the flow. In a particular case ofTCP/IPv4, the 32-bit watermark may be stored in the Stream ID optionfield (i.e., in the header) in the IPv4 packets. To indicate a QoS levelfor the flow, a portion of the watermark may be reserved for a QoS levelidentifier. For example, in the example of a 32-bit watermark, the 4MSB's (“most significant bits”) of the watermark could be used toidentify the QoS level, yielding 16 available levels, and the remaining28 bits of the watermark could be used to uniquely identify the flow.

The 32-bit watermark, or a portion thereof, may act as an identifier. Noparticular format is required for the watermark, and accordingly almostany format may be used. In the example illustrated, the 4 MSBs are usedfor the QoS level, and the remaining 28 bits can be used to store aunique identifier. One possible use for the remaining 28 bits is tostore a unique identifier that is associated with a watermark packetkey—which key can be used to help authenticate the data flows.

For example, the slender may create an array of SHA-1 hashes (or anyhashing protocol deemed secure by the party or parties mutually) of theflow using a 4096 bit random sequence (the 4096 bit random sequence isreferred to as the “Watermark Packet Key”). More particularly, the inputto a hash function is comprised of three things: the Watermark PacketKey (in this case, 4096 bits), the Watermark (in this case, 32 bits),and a portion of the flow (for example, that portion of the flow thatwill be placed in a given packet). It is anticipated that the portion ofthe flow to be used as input to the hash function may comprise that theflow associated with one, two or even more data packets, but forpurposes of illustration, the flow associated with one packet is used(i.e., the portion of the flow that will be inserted into one TCP/IPv4packet). The output of the hash may have a predetermined number of bytes(usually as pre-determined by the hash function—for example, 20 forSHA-1). The array is the set of all of the hash outputs generated usingsuccessively portions of the flow until the complete flow has beenprocessed. The outputs of the hash, the Watermark Packet Key, and the32-bit watermark are combined to create the Watermark Identification(“WID”).

Accordingly, the watermark can be matched to a corresponding WID (bycomparing the watermark in a packet with the watermark in a WID to seeif they have the same unique identifier associated with a givenwatermark key). The component parts of the WID may then be used to checkthe authenticity of the flow. For example, the watermark key from theWID can be used with the data flow from the data packet to create a hashoutput, which can then be compared with the corresponding, previouslygenerated hash output stored in the WID. If the newly generated hashoutput matches the previously generated has output, then the data isconsidered to be authenticated. Moreover, if a portion of the watermarkis used to identify a particular QoS level, then the data can beevaluated for compliance for a particular path (such, as fortransmission by a compliant router).

In this illustrated embodiment, 4 MSBs of the watermark have been usedto identify a QoS level. This is simply a suggested format. Anypredetermined bits (e.g., 4, more than 4, less than 4, whether MSBs orLSBs or even nonadjacent bits) may be used. It is preferable, however,that the same watermark be used within each packet of the stream. It isalso contemplated that the watermark may contain no QoS indicator, inwhich case, all of the bits allocated for the watermark may be used fora unique identifier such as that associated with a particular watermarkpacket key.

The WID holds all of the dependent data. There is only one 32-bitwatermark assigned for each stream, and one WID created. The WatermarkPacket Key may be reused. So the WID may look like this:

4 bytes (32 bit watermark, inclusive of any QoS indicator)

512 bytes (4096 bit Watermark Packet Key)

20 bytes (hash output from the first block of the flow of data steam)

20 bytes (hash output from the second block of the flow)

20 bytes (hash output from the third block of the flow)

. . .

20 bytes (hash output from the last block of the flow)

The size of the blocks used for hash input may be determined by theratio described below.

Each router along the path of the flow can read the watermark anddetermine its QoS by using those bits associated with the QoS indicator(in this case, the 4 MSB's of the watermark). Each router can then takeappropriate action for prioritizing or deprioritizing each packet. Theseactions might include: choosing a path based on load, reliability, orlatency, or buffering lower priority packets for later delivery.

The router may be configured to check the authenticity of each packet.Preferably, a router may be configured to check a subset of the packetsfor authenticity (thereby, reducing overhead computationalrequirements). For example, copies of a predetermined, small percentageof watermarked packets may be diverted to a sniffer. Preferably, thesniffer has received the WID's for all authorized flows either beforereceiving the flows or in a time frame that is contemporaneous. Thesniffer compares the watermark of the copied packet to its WID table tofind the appropriate WID. If a corresponding watermarking key is notidentified, the packets are deemed unauthorized and the router isinstructed to deprioritize, or, preferably, to block the flow ofinauthentic data. If a corresponding WID is found, the sniffercalculates a hash output (for example, using the SHA-1 hash of thisexample) for the packet and attempts to match it to the correspondinghash in the WID. If the hash values match, then the router permits theflow to continue on its path. If the hash values do not match, thepackets are deemed un-authenticated, and the router is notified.

Preferably, the watermark generator software is responsible formaintaining a specific list of sniffers that are to receive the WID. Foreach one of these, the WID is preferably sent encrypted and signed,using a public key technology, such as PKIX certificates or Open PGPkeys. It is envisioned that the watermark generator will be responsiblefor delivering the WID to trading partners who have established a priorbusiness arrangement, and the WID will be passed along to additionaldevices by the trading partners, thus eliminating scaling problems atthe sender. These may comprise, moreover, functions handled by theexchange and clearinghouse features of the present invention, disclosedbelow.

It is contemplated that the present invention may permit control over aratio of the sizes of the original data to the size of the WID made fromthat data. A typical ratio might be 100:1, which means that every 100bytes of original data create 1 byte of hash. Generally, it is desirablefor a sniffer to collect 2× the original number of bytes to guaranteeenough data to calculate a hash, given that the sniffer does not know apriori what the original size of the number of bytes. For very largeflows, 100:1 may create unacceptable large WID's. The ratio can be setto any value. As the ratio decreases, the WID delivery channel needs toget larger. As the ratio increases, the amount of original contentnecessary to the sniffer increases, as does the amount of the flow thatcan pass before an authorization check can be completed. By making theratio sensitive to data type and size, the system can be dynamicallyoptimized to meet the needs of the market. To more fully extend thebenefits of this embodiment we generalize additional novel featuresabsent in the art concerning, management, pricing mechanisms,clearinghouse and dispute resolution methods and systems.

Exchange and Provisioning for Bandwidth Optimizations Defining the Valueof Bandwidth Rights

It is an object of the present invention to create methods forallocating bandwidth resources. One approach is to break the bandwidthinto discrete, usable component pieces, and enable an electronic marketsystem to set a price for the commodity (“the bandwidth’) setting anequilibrium level of supply and demand. The net effect of this approach,and its anticipated trading system, will be to efficiently apportionbandwidth to users who wish to download or upload value-addedinformation, in whatever form it takes (including value-addingcomponents, or VACs—disclosed in TRUSTED TRANSACTIONS—). This includesefforts to broadcast or stream data as well. Bandwidth affects the speedof information transfer. Bandwidth is defined as bits per second. Ifmore bandwidth is used, speed increases, and the transfer isaccomplished in less time. A need exists in the art for deciding whichbits should be prioritized versus the fixed amount of time available toroute or transmit the bits. Valuing bits in a bandwidth context issimilar to quantizing risk in other commodities' transactions.

Mathematical techniques exist which are applied to financial instrumentsto break risk down into discrete components to better predict orforecast financial decisions. Better measures of risk assist in makingbetter decisions concerning the allocation of resources. Allocation ofbandwidth resources is another increasingly important financial decisionin an information economy. These may include investment decisions orinsurance decisions. Investment decisions regard the choice to allocatefinancial resources in a manner to optimize the return on theinvestment. Insurance is designed to use actuarial estimates of a givendata object or commodities' history and condition to estimate a cost forcovering the potential loss or damage of the data object. Because it isdifficult to predict what data object (thus, bandwidth) will be demandedand thus how to assist in estimating the potential economic value ofsuch demand for a given network, pricing models need to be used toassist in quantizing risk, exchange mechanisms are required tofacilitate trades, and cryptographic protocol applied to assureconfidence in the provisioning of bandwidth.

Focus has been made on options pricing models, such as the well-knownBlack-Scholes option pricing mechanism, and variations which exist tobetter estimate and quantize risk for a commodity that is being optioned(so-called “derivatives”). Given the imprecise nature of bandwidthallocation, without regard to decisions concerning the supply and demandof said bandwidth, the present invention introduces a number ofimprovements to the handling of data (e.g., provisioning) and byextension the bandwidth used to represent said data. Some of themathematical techniques for pricing models, including Black Scholes,will be outlined below. These techniques can be used to facilitatebetter pricing in addition to the increased efficiencies evident withbandwidth provisioning using packet watermarking described above(applied to packets and in some cases additionally the data object—amicro and macro approach). Bandwidth is a commodity and by extension apotential form of currency that is better priced with financial toolssuch as options and other derivatives. Being able to communicate onlythat which people are willing to pay for, requires integration ofidentification and authentication of bandwidth between parties.

Black-Scholes is easily represented by the following properties, whichcan be further generalized mathematically. The standard deviation of theasset's value (that which is optioned) multiplied by the square root ofthe time of the option's expiration. Essentially a ratio of the assetvalue to the present value of the option's strike price. The strikeprice is the price at which the option is being offered and laterexercised.

Simply:

First) Standard deviation of the asset's value multiplied by the time ofthe expiration of the option=

Second) The underlying asset value/the present value of the option'sexercise price option exercise price/(interest rate) superscript time ofthe option

To purchase or to sell is the difference in the right of the option thatis called a “call” or a “put” (the right but not obligation to “sell”, acall is the right to “buy”, the underlying asset covered by the option).

More generally, the Black-Scholes equation is as follows:

C ₀ =S ₀ N(d ₁)−Xe ^(rfT) N(d ₂)

Where

S₀ the price of the underlying asset (a predetermined value)

N(d₁)=the cumulative normal probability of unit normal variable d,

N(d₂)=the cumulative normal probability of unit normal variable d₂

X=the exercise price

T=the time to expiration or maturity of the option

r_(f) =the risk free rate (a value which can be predetermined at thetime of pricing the option)

e=the base of natural logarithms, constant=2.7128 . . .

d₁=[(In(S/X)+r_(fT))/(σ√T)]+[1/(2σ√T)]

d₂=d₁−σ√T

Helpfully, by isomorphic relationships we can extend the Black Scholesmodel to discrete mathematics which, as is known in the art, is able tohandle continuous time and proof of the limit of options pricing. Thepresent invention sets a limit for how much we can know in estimatingthe price of the option given both objective (that which can bepredetermined) and subjective (that which like “indeterminable” or“unpredictable” risk cannot be predetermined) data elements. MakingBlack Scholes discrete also enables the present invention to describemore concretely aspects of optimizing bandwidth as an asset for whichrisk exists in how it should be allocated or used.

If an individual instance of the present invention's proposed instrumentis a bandwidth right (as well, by extension an “option” which is theright but not obligation to purchase the underlying covered commoditywithin some predetermined period of time: in this case bandwidth), itcan be observed that several factors will affect its value, includingthe following:

Intrinsic Value

This value is measured versus a minimal standard telecommunicationscost. Telecommunications infrastructure has obvious relationships withthe potential cost of carrying or allocating bandwidth. Intrinsic valuemay differ between providers, geographic location, wired or wirelessconnections, and countries. To the extent there exist such differencesin pricing, elements of the present invention can create costequivalencies based on such observable differences and identify thedifference in cost. If there is a single underlying telecommunicationscost to the owner of the right of X dollars per time, let min₀ representthe amount of time it takes to download the information using theminimal bandwidth, and mini represent the amount of time to transfer theinformation at the bandwidth represented by this right. Note that

min₀≧min₁

Then the intrinsic value V₁=X×(min₀-min₁), or the amount of money savedin telecommunications costs at the higher bandwidth. The intrinsic valuecan be negative, which would imply a compensating premium placed on thetime saved by using the more expensive transport.

Percentage Chance of Failure

This probability recognizes the generally unreliable nature oftelecommunications and transmission mediums as well as underlyingcomputer systems. There are basic and more advanced methods forestimating the so-called Quality of Service (“QoS”) of a given networkwhich, as previously disclosed, estimates a raw measure of thepercentage of bandwidth being offered to some number of users connectedto network in question in capacity terms. To equate QoS with historicalpeer-to-peer, or end-to-end, handling of bandwidth, features of thepresent invention are directed. Rather than be burdened with the task ofsolving all of the “bugs” in a given piece of commercial software, ornetwork, it would be better to account for failure in the valuation.This value could be adjusted over time, as the failure probability of asystem becomes more apparent, or changes. Some actuarial measurement canbe made as experience with the envisioned system is realized.Additionally, heuristic measures may be logged or stored to identifyspecific points of failures or inefficiencies to be addressed.Reputations or recognition for particular users or providers can assistin decisions made by other market participants. In short, “percentagechance of failure” represents the percentage chance a user cannotexercise its right or option (where the option is the right but notobligation to purchase an underlying asset) for bandwidth. It affectsthe expected value of the right. In this baseline approach, if theprobability of failure is P_(f), where 0≧P_(f)≧1, and the value of theright is V₀, in the absence of failure, then:

V _(f)=(1−P)V ₀.

Convenience Premium

This represents some premium, V_(C), that a person is willing to pay totransfer their information within a specified period of time (i.e. “now”or “in the next 10 minutes”). The cost to the network to achieving thedemand of individual users may require predetermined estimates of howmuch bandwidth can be re-allocated to a user in demand or may bedynamically adjusted by factoring in some excess bandwidth to serve asliquidity for estimates of potential demand. For instance, highly soughtafter data objects or data streams may cause higher demands forbandwidth in real time or may be reserved by exercising the right beforeits expiration. An exchange itself may wish to pay for the rights toprovide additional needed liquidity to satisfy forecasted demand. Thepotential for increases in transparency by applying bandwidthprovisioning, described herein, and cryptographic protocols foridentification, authentication and verification, described in moredetail below, make possible better mathematical estimates of thepotential value of the convenience premium to all market participants.

Alternatively, the network may have higher demand which is consistentwith more predictable peak periods of time of use by consumers, forinstance between 4 μm and 7 μm on weekdays for consumer back from workor school. These rules can be used to filter and achieve betterestimates of how bandwidth should be allocated. The rules may applyto: 1) particular or uniquely identifiable data objects 2) whether thedata object is to be streamed 3) date or time schedules 4) geographiclocations of either the provider or user 5) the hardware or softwarewhich underlies the network for which the bandwidth is being sought 6)other unique circumstances including live performances. Moreover,identification of the parties involved in a particular transmission mayitself act as a contributing factor to increases in the value of theconvenience premium: a form of recognition or reputation. The premium isalso likely to come out as the market sets the price for a right. Ifthere is a formula for what the price should be, then the premium issimply the difference between the result of that formula, and the actualmarket price. This really measures the balance between supply anddemand. The more demand in excess of supply, the higher C will rise.V_(C) is then a function of supply and demand.

V _(real) =V _(theoretical) +V _(C)

Time Value

This is a function of the exercise period of a bandwidth right. It isproportional to P_(f) since more time allows for recovery from anindividual failure to transfer. There are two components of time, overwhat period a transfer can be initiated and for how long the transfercan last once it is initiated. Note that this is made more complex bycongestion factors. For instance, if a user has a right for 10,000 kbpsfor 10 seconds, and the user wants to transfer 100,000 kb, it is notlikely that the transfer can be done in exactly 10 seconds. Protocoloverhead and congestion will add some increment of time. It is advisableto leave room in the exercise period for these factors, rather thantrying to value the time value in some manner that accounts for thesetransient conditions.

Features of the present invention provision for additional data and timeoverhead to handle congestion with market-based features. Additionallyby utilizing the features previously disclosed concerning bandwidthpacket watermarking, time value can be more highly granular andidentifiable. Certainly, optimizing the flow of bandwidth while creatingaccounting and clearinghouse mechanisms for handling existing andspeculative demand for bandwidth resources is a novel and beneficialfeature over the prior art.

Thus: V=(1−P _(f))(V _(t) +V _(T) +V _(C))=(1−P _(f))[(X(min₀−min₁))+V_(T) +V _(C))]

The convenience premium, V_(C), should be independent of all othervalues (except V). The equation behaves as follows: With increasedfailure probability decreasing bandwidth rights value, independent ofother variables, while increased demand relative to supply would driveup V_(C) We might try to compute V_(C) by accounting for known demandand supply values, and in fact, it is of vital importance to know thesupply, and to allocate it so that any right issued can be exercisedwithin its exercise period.

Clearinghouse Functions

Additionally, it is observed that a method and system is needed toallocate supply based on demand that accounts for unused rights. Thismay be separate or complementary to the packet watermarking featurespreviously disclosed or may be considered an additional feature toassure that bandwidth provisioning is properly accounted for. In otherwords, the system needs to over-allocate supply to some degree, knowingthat some rights may go unexercised, so that demand is filled as much aspossible. This is similar to airlines' practice of overbooking flights.It is also necessary in providing liquidity to the market and assuringthat bandwidth is effectively allocated in a timely and efficientmanner. Some mechanism must be in place to prevent attacks on thesystem, by a party, who, in effect, tries to corner the market inbandwidth, with no intention of using it, so that it goes unused. Byextension, Denial of Service attacks are related o this unwantedoccurrence. Naively, one would think that since one has to pay for thebandwidth, why would someone want to corner the market? Althoughbandwidth is not “free”, it should only comprise a small fraction of thevalue of the information to be transferred, and so this is not anunthinkable situation. Similarly, the accounting of the bandwidth usedshould not exceed the value of bandwidth provided. An accountant cannotcharge more than the value being accounted, the economics cannot justifythe cost. By breaking down the path of packets as well as provisioningfor pricing based on supply and demand, features of the presentinvention address accountability in a transparent manner.

As well, ISPs and other providers of information must be able to engagein competitive bidding, or arbitrage, for the cost of the bandwidth theypurchase and better map these purchases with demand patterns of theirusers or demands being made by other vendors who currently engage insharing bandwidth resources to enable a freer flow of information acrosspublic networks. The likeliest preventive measure is the existence ofcompetition in transmission. Additionally the methods and systemcontemplated herein include provisions for clearinghouse facilities andaccountability handled by trusted third parties. Transactions for therights, options and the actual trading of bandwidth can include securetime stamps, digital signatures, digital certificates, and othercryptographic protocols to enable independent third party verificationand accountability. These features can be offered in real time or may besaved in separate, secure storage facilities for assisting insettlements. Where two parties may have competitive interests in anygiven transaction contemplated herein, secure, cryptographic credentials(such as, digital signature, secure digital watermarks, digitalcertificates, and the like) have obvious value to enhancing the successof an efficient bandwidth exchange. These issues are disclosed below.

Secondary Markets

Another option is the potential need to necessitate a secondary marketfor the trading of bandwidth, which could be divided up by a tradingsyndicate, and traded on a secondary basis to users. In a manner ofoperations, telecommunications companies perform this role betweennational telecommunications systems to facilitate international phoneusage. But the difference with the system envisioned in the presentsystem is that “any” user could buy bandwidth rights at times of lowdemand, and hope to sell them at a profit in times of higher demand.This would seem to imply the exchange itself should do some proprietarytrading in this manner, both to profit, and to ensure some bandwidth isavailable for sale to users when they need it. This will have a purposeto serve in making the market efficient in the future. The presentinvention anticipates such facilities which can be created and handledby parties with an interest in the efficiencies and potential profitopportunities afforded to maximizing the value of bits being handled byany given network, or networks. Time being typically fixed for users,value of the data objects being offered being subjective, features ofthe present invention offer robust handling of supply and demand ofbandwidth.

Bandwidth rights instruments are likely to be highly localized tospecific subnets, domains, internet service providers (“ISPs””, portals,wireless networks, etc). Especially since certain types of connectionsmay be available only from certain exchanges, and since failureprobabilities are likely to vary with specific hardware, operatingsystems, and service providers (including ISPs). Additionally, the basicvaluation equations above do not address telecommunications costs acrossvarious types of lines. This problem at least, can be solved by activemaintenance of cost tables, designation codes for types of lines, andthe designation of a low cost standard: a minimal intrinsic value tobandwidth is an example of a minimum cost. Secondary markets for thecash or cash equivalent value of bandwidth given the limitations of aparticular means for bandwidth exchanges, including POTs, DSL, cable,fiber, wireless, etc., is enabled by features of the present inventiongiven the link between supply and demand, additions of rights andoptions for time value, and the cost of bandwidth for objects beingexchanged or streamed, in satisfying demand.

Bandwidth as “Currency” Between Exchanges

The problem of moving rights between exchanges can be difficult sincesupply/demand planning for one exchange will not translate to another,unless some means for interconnecting exchanges is developed, andexchange bandwidth planning is global. The race by many parties to linkusers to the Internet via varying access links (modem) including DSL,POTs, cable, fiber, wireless, satellite may further the need for commonbandwidth pricing. In fact, improved handling of bandwidth is a resultof the success of TCP/IP and the vendors who have integrated much of thepublic Internet as well as gateways to virtual private networks(“VPNs”). What is clear is that the basic structure of the presentinvention would facilitate such planning to the benefit of all marketparticipants: telecommunications providers, ISPs, users and publishersas well as more general aggregators of content and bandwidth such as,phone companies, cable companies, personal digital assistantmanufacturers, personal music device manufacturers, and satellitecompanies intending on providing services across multifarious linetypes.

Accountability and Cryptographic Credentials

By securitizing bandwidth rights, the creation and supply of bandwidthrights digital certificates, made unique by cryptographic methods tomanage them, will also be necessary. Transferring traditional digitalcertificates between individuals is complicated and unnecessary withouttying such cryptographic credentials into the functions of the exchange.The three main categories are: advertisement or publicly availableinformation concerning the bandwidth rights certificates, facilities forhandling the identities and financial credentials of the market ofbuyers and sellers, and a facility for completing or settlingtransactions. Independent oversight concerning disputes resolution areanticipated and benefit from the level of cryptographic protocolutilized in the present invention. Following the general principles of asecurities clearing model is highly applicable. In this case, theexchange needs to create and manage an account for each party that canown or trade bandwidth rights. Additionally, a method for authenticatingsaid party or parties is required. Use of public key infrastructure,including digital credentials such as certificates, as well as addingthe additional feature of embedding these credentials into data beingtraded by means of a steganographic cipher or digital watermark, areclearly absent in the prior art.

Additional facilities for accountability may include digital signatures(including such variants as one time signatures, zero-knowledge proofsignatures, etc.). Separating recognition or general search facilities,i.e. market data in which participants decide to enter intotransactions, from transactional, audit-type facilities have the likelyimpact of improving the handling of noncommercial and commercialactivities for the network as it balances bandwidth needs. Additionally,as all the data being handled for exchange function and fulfillment canbe measured in terms of bandwidth, the present invention serves as abasis for increasing the likelihood of enabling bandwidth to act ascurrency for information data, as well as optimizing the economic use oftelecommunications networks. With these elements, a trading marketsystem can be implemented by the following methods:

The EXCHANGE creates and manages a supply of uniquely distinguishedbandwidth rights certificates. These certificates are good for aspecific period only. They may traded over the course of time, anywherefrom the moment they are created to the expiration time. It isquestionable whether a right should be exercisable once it is clear thateven if a transfer is initiated, it cannot be completed given that rightonly. However, consider that the right is usable, but its valuedecreases rapidly as it approaches expiration (i.e. value is based ontime left, not total transfer time). Once a certificate is expired it isdeleted. Inclusion of more traditional notions of options, as previouslydisclosed would greatly assist in measuring and quantifying riskassociated with bandwidth rights certificates. Hash values incorporatinga time-stamp could be used to serialize certificates. Such acryptographic method is well noted in the art. U.S. Pat. Nos. 5,136,646and 5,136,647 (“Digital Document Time-Stamping With CatenateCertificate” and “Method For Secure Time-Stamping Of Digital Documents”respectively) describe methods for cryptographic time stamping. Besides“universal time,” used for secure time stamps, other methods for datauniqueness include digital signatures or one-way hash functions alone.These elements may include information relating to an independent thirdparty, the exchange where the transaction takes place, an agent orprincipal to a transaction, a certification authority, or some subset ofthe data may be handled anonymously to assure levels of anonymity whichmay be required in assuring higher efficiencies in handling and settlingtrades for bandwidth rights certificates and the associated bandwidth.

One way would be to extend the attributes of a traditional digitalcertificate by incorporating the present inventions novel features ofhow bandwidth is to be provisioned, as previously disclosed inconnection with packet watermarking or faster routing processesincluding application of Reed Solomon or other error correction codes tonetwork data handling, and any mechanism which can be adjusted toreflect the real-time or future price of the bandwidth certificate. Ifthe available price is immediately based on some impending expiration ofthe validity period of the bandwidth right itself, OR the validity ofthe bandwidth rights cryptographic certificate, if the actual period oftime the cryptographic attributes saved in the digital certificate isclose to expiration, this value may become infinitesimal as expirationoccurs. For instance an X.509 digital certificate contains the followingelements:

1) Version of X.509 2) serial number of the certificate 3) thecertificate holder's public key 4) the certificate holder's unique ID 5)the certificate validity period 6) The unique name of the certificateissuer 7) the digital signature of the issuer and 8) the identity of thesignature algorithm.

Fields for 1) handling the bandwidth to be transacted, as per theprevious discussion on how to route bandwidth packets (including thepreviously discussed Reed Solomon variation on transmitting packets inchunks to speed overall transmission); 2) a field for a pricing scheme;and 3) a field for additional information to assist with the pricingscheme, such as a Black Scholes options field, could be supported tohandle particular embodiments of the present invention. In some cases,the certificate may not require all of the elements as they pertain tobandwidth trading and could include, at the very least:

1) The digital signature of the certificate owner (this might includethe unique information relating to the exchange or hub for which thecertificate is being considered for trade, especially if pricing differsamongst a plurality of similar exchanges) 2) unique ID of thecertificate holder (including, for instance, a buyer, seller, or agent,and any unique information or ID for which the certificate holder iscommitting the certificate to any of a plurality of exchanges) 3) thecertificate validity period (for the present invention, this would applyto either the validity of the cryptographics employed in the certificateor the period in which the price or price equivalent value, for instancean buy or sell option or futures price, is valid) 4) the identity of thecryptographic algorithm[s] which is used by the certificate owner. 5)the identity of the pricing mechanism used (including provisions forBlack-Scholes or similar options pricing models, futures, or othersimilar mechanisms)

Additionally, use restrictions or rules associated with the bandwidthbeing contracted for/to can be added as additional fields. These mightinclude predetermined agreements which assist in defining theapplication of the bandwidth right to an applicable market or markets.There may also be provisions for including functional data, software orexecutable computer code, or algorithms, to the bandwidth rightcryptographic certificate to reduce computational overhead at the senderor receiver end of a transmission.

The exchange creates a central hub, or plurality of hubs, for planningbandwidth supply, accounting, and disseminating pricing information.This hub may take the form of a syndication or plurality of similarlysuited exchanges or there may be exchange rate features to account fordifferences between telecommunications costs in a given locality orgeographic location (such as a country, city or states). Differences mayexist between exchanges in the types of cryptographic protocols whichare used by the exchange, as well. Alternatively, the differencesbetween how pricing information is disseminated between variousexchanges will relate specifically to the cost of the telecommunications(i.e., “intrinsic value”) based on the form of deployment (POTS versuscable) or spectrum being handled (wireless 900 MHz versus 3 G). In somecases, spectrum allocation may suffer from other market pressures inpricing including government control or some other similar restrictionfor how the bandwidth may be allocated or used. Client-side softwarewill value the rights relative to a particular user's needs, and used byany party trading rights. A seller creates a SELL advertisement, whichis entered into the “exchange.” The exchange verifies the selleractually holds the right in their account.

The exchange may further maintain records regarding the reputations ofthe market of SELLERS and BUYERS who have traded on the exchange.Additionally, embodiments of the present invention may separate thetrading facility from the facilities for advertising BUY and SELLorders. A buyer then enters a BUY offer against the sell advertisement.The exchange validates the buyers and sellers, and then clears thetransaction, transferring money from the buyer's payment method orcredentials (credit card, micropayment, payment facility, credit terms,etc.) to the seller's account, and the right to the buyer's account. Theunbundled right may be so infinitesimal that the actual cost of theright must be bundled with the underlying content or information beingsought. The rights could also be bound to underlying titles (by anassociated hash or digital signature or an embedded digital watermark).Essentially the relative cost of the bandwidth right represents somesmall amount of bandwidth, satisfactory in serving as a cryptographic ortrusted piece of information, which is factored into various classes oftrades so that higher computational efficiencies can be maintained. Ascertain bandwidth certificate attributes are used more frequently,perhaps, than others who are buyers or sellers or both, of bandwidthrights, smaller more compact amounts of bandwidth will likely be resultas improvements and experience dictate. This may be similar to attachingsales taxes, handling charges, and credit card use charges that aretypically bundled with the cost of a given physical goods purchase. Theunderlying telecommunications cost (i.e., “intrinsic value”), theunderlying computational cost of the bandwidth certificate and itsattributes, as well as additional information overhead for accountingand clearing trades, would represent the cost floor in computationalcost, bandwidth, and time for embodiments contemplated herein.

When bandwidth is actually traded some link between the original tradefor the bandwidth being supplied may be hashed or signed and used as atransaction receipt for the data that is later sent using the transactedbandwidth. This data can alternatively serve as a record of trades fordispute resolution or accounting to keep all participants informed. Oncethe actual transacted bandwidth is used by an end user, embeddingbandwidth rights, bandwidth certificates, transaction-related uniqueinformation (for instance, hashes, signatures, times stamps, etc.) withdigital watermarking technology has the further benefit of keeping thefile size of the bandwidth once it is used in the form of a data objectbeing exchanged or streamed. It is clearly an option with benefits forembodiments of the present invention. Again, a separate certificationauthority or government-agency may ultimately serve as the arbiter oftrust in enabling economic, transparent and liquid markets for bandwidthuse.

SAMPLE EMBODIMENT

User A has a cellular phone and a personal digital assistant (“PDA”). Hepays a fixed rate of $100 per month for 1000 minutes of cellular airtime (which equates to $0.00167 per second). There are times at whichthis rate may be higher or lower or locations for which charges may beassessed when the use utilizes either device in some geographic locationoutside of, for instance, the location where the devices were registeredfor use. The user alternatively pays $200 per month for 1000 minutes forPDA connectivity (which equates to $0.00333 per second), which mayinclude e-mail functions, image or audio file downloads or streams, andany other functionality commonly attributable to a general computingdevice such as a PC. The PDA may also place a cost structure on wherethe device is used in relation to its registration location and maycharge for the amount of data which is uploaded, downloaded orexchanged. This may be measured in bandwidth terms (such as a charge persome amount of bytes or bits). The functionality being different foreach device, an arbitrage opportunity exists if the user can trade hiscellular phone minutes for PDA minutes. The benefits in this example area 2:1 ratio of expense.

User A may want to use either of the devices in the example to make somepurchase of a good or service which can be handled by the device itselfThe security for the transaction must have been previously agreed to bythe vendor providing the goods and the provider of the device for whichembodiments of the present invention can be used to facilitate acommercial transaction. For instance, a vending machine which can handletransmissions from either of the two devices to enable a transaction fora can of soda or a weather forecast, or some other valued consideration,is a device with which the present invention has applicability. The userhas bandwidth rights which may be separate from the minutes that havebeen paid for solely for the functions of the respective device. Theuser may use a valid or existing bandwidth rights certificate torepresent a payment facility for which the cellular or PDA bandwidthprovider can monitor and account. If the transaction can be handled withthe vending machine, for instance a wireless exchange of credentialsbetween the vending machine and user's device, value has been attributedto the use of bandwidth. The cellular phone, in this example is thecheaper mode of bandwidth based strictly on functionality. The PDAprovider may change its pricing to reflect transaction specific pricingto have competitive payment facilities based on bandwidth rightscertificates and higher value added services to the customer.

The point of this embodiment is to emphasize the treatment of bandwidthas a commodity which may be valued in a transaction. The value inherentin information content or the facility of information itself to assistin transactional activity is valuable in an information economy. Thetime it takes for sender and receiver confirmation of a transactionbetween the user and the vending machine may take, say 5 seconds. Thetime spent in completing the transaction includes how much informationwas exchanged, in some quantitative measure such as bits, to satisfy therules of a successful transaction. If the vending machine item is onedollar, the cost of the transaction is one dollar plus the cost of 5seconds of air time that was used to consummate the transaction. Hencethe total cost is: $1.00+5×$0.00167 (or $1.00833), if the cell phone isused; or $1.00+5×$0.00333 (or $1.01667), if the PDA is used. The cost ofthe goods or services sold leaves a margin of profit There is arelationship to the efficiencies of increasing the convenience of ameans of payment for users, increasing the ability of traditionalbandwidth providers to leverage existing subscriptions and arrangementswith customers, and the ability to atomize bandwidth as a valuedcommodity given its inherent nature: it is a measure of information indiscrete time.

SAMPLE EMBODIMENT

In this embodiment we use bandwidth to purchase other informationresources such as kilowatts of power from a utility power grid. As such,bandwidth acts as a currency which has a defined (though perhapsfluctuating) value. The amount of bandwidth that is used to “purchase” aspecified amount of power will be determined based on the market forcesat play. The total amount of bandwidth will be the cost of the goodsbeing purchased (in this case, the specified amount of power) plus thecost of the bandwidth used to complete the transaction—which may varywith the communication channel being used (e.g., the use of a PDA vs.the use of a cell phone). In effect, “bandwidth” is removed from myaccount in an amount necessary to complete the transaction. To furtherillustrate this point, it is assumed that the amount of power beingpurchased is valued at $50, and it is further assumed that thetransaction requires 5 seconds of air time to complete. If the purchaserhas an account balance of 60,000 seconds of air time (equating to 1,000minutes), and the fair market value of the air time is $0.00167 persecond, then the purchaser's account is debited 29,945 seconds (equatingto $50.00835—in other words, the $50 for the power plus the cost of theair time to complete the transaction). In some circumstances, the totalcost may be increased if there is a transactional cost in addition tothe cost of goods and the cost of air time. For example, if the airtimeis tied to a credit card, the credit card company may charge atransactional fee (e.g., 1% or more) for all transactions executed inconnection with the credit card, in which case, the credit card maydebit the purchaser's account an additional 1% of air time (by way ofexample) which the credit card company may utilize for internal purposesor may turn around and re-sell to another user.

Other embodiments and uses of the invention will be apparent to thoseskilled in the art from consideration of the specification and practiceof the invention disclosed herein. All references cited herein,including all U.S. and foreign patents and patent applications, arespecifically and entirely hereby incorporated by reference herein. It isintended that the specification and examples be considered exemplaryonly, with the true scope and spirit of the invention indicated by theclaims below. As will be easily understood by those of ordinary skill inthe art, variations and modifications of each of the disclosedembodiments can be easily made within the scope of this invention asdefined by the claims below.

1-56. (canceled)
 57. A computerized system for creating a medium ofexchange, the system comprising: computer code to organize data into atleast two packets; computer code to generate a packet watermarkassociated with the contents of at least one packet; computer code toestimate a value such that the value is sufficient to transact; computercode to combine the packet watermark, the estimated value, and the atleast one packet, for transmission across a network of users.
 58. Thesystem of claim 57, wherein the value is estimated using one of: abandwidth rights certificate, options pricing model, a bit per timecalculation, or combinations thereof.
 59. The system of claim 57,wherein the contents of the packet are uniquely identifiable ortraceable.
 60. A computerized system for transacting bandwidthcomprising: computer code to receive and organize bandwidth into aplurality of packets; computer code to combine at least one bandwidthrights certificate, at least one portion of a packet watermark, and atleast one packet; and computer code to use the bandwidth for atransaction wherein bandwidth usage corresponds to the sum of: i) thepurchase value for a selected item; ii) a transactional charge; and iii)the amount of bandwidth used to satisfy the transaction.
 61. The systemof claim 60, wherein the bandwidth is measured according to at least oneselected from: time, computational resources, data transfer, intrinsicvalue, subjective value, objective value, willingness to pay,convenience premium, telecommunications costs, or combinations thereof.62. The System of claim 60, wherein the transaction can be independentlyidentified, verified, authorized, audited, stored or combinationsthereof.